Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - MFI deputy arrested for alleged loan scam

MFI deputy arrested for alleged loan scam

MFI deputy arrested for alleged loan scam

The deputy chief of a microfinance NGO was arrested on Tuesday evening following allegations that he and his brother, the NGO’s director, had scammed Svay Rieng province villagers out of nearly $40,000, police said yesterday.

According to the victims’ complaint, suspects Chet Sarin, 32, and his brother Chet Ven, 26 – the deputy director and director of NGO the Cambodian Village Development Agency, respectively – tricked 13 families in Svay Rieng’s Pong Teuk commune into borrowing a total of $40,000 from Acleda Bank then turning it over to their organisation, said deputy provincial police chief Kuy Sopheap.

In return, the two men promised to make the bank payments and pay participants 40 per cent in interest after two years, but instead disappeared after a few months, he added. Police managed to arrest Sarin, who reportedly confessed, but Ven is still at large.

“He made payments to the bank for only three to four months, and then he escaped payment. That’s why the bank demanded the villagers pay,” Sopheap said. “Now the village has no money to pay to the bank.”

So Sorn, Pong Teuk’s commune chief, said that the villagers had been lured into agreeing to the scam thanks to the high interest rates promised. In February, the Finance Ministry warned Cambodians not to trust microfinance institutions offering extremely high interest rates.

RECOMMENDED STORIES

  • Breaking: PM says prominent human rights NGO ‘must close’

    Prime Minister Hun Sen has instructed the Interior Ministry to investigate the Cambodian Center for Human Rights (CCHR) and potentially close it “because they follow foreigners”, appearing to link the rights group to the opposition Cambodia National Rescue Party's purported “revolution”. The CNRP - the

  • Rainsy and Sokha ‘would already be dead’: PM

    Prime Minister Hun Sen on Sunday appeared to suggest he would have assassinated opposition leaders Sam Rainsy and Kem Sokha had he known they were promising to “organise a new government” in the aftermath of the disputed 2013 national elections. In a clip from his speech

  • Massive ceremony at Angkor Wat will show ‘Cambodia not in anarchy’: PM

    Government officials, thousands of monks and Prime Minister Hun Sen himself will hold a massive prayer ceremony at Angkor Wat in early December to highlight the Kingdom’s continuing “peace, independence and political stability”, a spectacle observers said was designed to disguise the deterioration of

  • PM tells workers CNRP is to blame for any sanctions

    In a speech to workers yesterday, Prime Minister Hun Sen pinned the blame for any damage inflicted on Cambodia’s garment industry by potential economic sanctions squarely on the opposition party. “You must remember clearly that if the purchase orders are reduced, it is all